Crisis begins to hit European carmakers as researchers predict a recession
in the car markets.


(EU) BERLIN, GERMANY (OCTOBER 8, 2008) REUTERS -
While the world's largest premium car maker BMW may have had to cut
output, car sales still seem to be going strong according to a Berlin car
salesman. But Ferdinand Dudenhoefer from Gelsenkirchen's Center for Automotive
Research told Reuters on Wednesday (October 8) that most will not be so lucky.

"We are going into a big recession as far as the car markets are
concerned" Dudenhoefer said.
"In Europe, the recession advances bit by bit, in America the car
markets have been destroyed. The next three years will be very, very hard for
car makers and suppliers", said Dudenhoefer, adding: "It looks like
nobody will get through this crisis without having to shorten production. Some
might be lucky enough to having to shorten less dramatically than
others."
Berlin based car dealer Andreas Dutack head of sales at the Riller and
Schnauck BMW car dealership, said his business had not been hit by the crisis
yet.
"All I can say is that our figures are much better than last year.
We feel nothing of a crisis, I think a lot of it is like a self fulfilling
prophecy", Dutack said.
U.S. automakers General Motors and Ford Motor announced they will cut
output in Europe, in another sign turmoil on financial markets is ruining
consumers' appetite for big-ticket items like cars.
GM has shut its Opel factory at Bochum, which makes Astra and Zafira
models as well as axles and gearboxes, for two weeks until October 13, said a
spokesman for Opel, the main European unit of GM.
Another German plant in Eisenach, which makes the new Opel Corsa
compact, will halt production from October 13 for three weeks, the spokesman
said.
Opel is negotiating with labour over scrapping an evening shift at its
Spanish plant in Zaragosa for a year, the Opel spokesman said, adding GM
planned to cut production in Britain as well.
Ford plans to rein in output at its German plant in Saarlouis and will
this month terminate 204 temporary jobs that were supposed to run until the
end of the year, a Ford spokesman said.
He did not say how much production would be reduced at the factory that
makes Focus, C-Max and Kuga models.
Daimler's premium Mercedes-Benz division, BMW and Volkswagen units Seat
and Skoda have also been forced to cut output in the face of falling demand.

Carmakers are bracing for tougher times as market sentiment turned sour,
with economists chopping their growth forecasts for the euro zone and warning
the effects of financial turmoil are swiftly seeping into the manufacturing
sector.
European carmakers' association ACEA said passenger car sales in the
region fell 15 percent in August, citing a loss of consumer confidence and the
continuing rises in petrol prices.
For the January to August period, unit sales were 3.9 percent lower than
last year, ACEA said.
German trade magazine Automobilwoche said at the weekend that
Mercedes-Benz wants to cut production by another 35,000 units by year's end
and would do this by extending a scheduled Christmas break for workers.
Last year, Mercedes sold around 1.3 million cars. Mercedes declined
comment.
In August, Daimler announced it would cut production by around 45,000
cars this year by reducing the working shifts at most of plants.